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Process for FPA Part I Penalty Assessment

Compliance Order Process
  1. Compliance Order is issued.


  2. Final Compliance Order is issued by Commission.


  3. No compliance with Compliance Order.


  4. Notice of Proposed Penalty: Before issuing an order assessing a civil penalty against any person, the Commission will issue such person notice of the proposed penalty and a statement of the material facts constituting the violation.


  5. Administrative Hearing Pursuant to Section 31(d)(2): Administrative hearing before an ALJ at the Commission, the procedure will be as follows:


    1. Hearing Order: The Commission will issue a hearing order that will inform the person of the opportunity for an administrative hearing before an ALJ. The ALJ will conduct a hearing under Part 385 of the Commission's regulations. Staff from the Office of Enforcement will serve as trial staff at the hearing.


    2. Initial Decision: The ALJ will issue an Initial Decision and determine whether a violation or violations occurred. If a violation is found, the Initial Decision will recommend any appropriate penalty, taking into account factors described in the Policy Statement on Enforcement.


    3. Exceptions: The Commission will consider the Initial Decision of the ALJ and any exceptions filed.


    4. Final Commission Decision Penalty Assessment: If the Commission determines that there is a violation, the Commission will issue an order and may assess any appropriate penalty.


    5. Payment of Penalty: Subject can pay penalty assessment at this time or


    6. Seek Rehearing: In accordance with FPA section 313(a) and Rule 713, the person may request a rehearing no later than 30 days after the issuance of the order assessing the penalty.


    7. U.S. District Court Collection on Judgment - Judicial Enforcement: Once there is a final Commission decision under the section 31(d)(2) process or the Commission has obtained a judgment under section 31(d)(3), the Commission can institute a collection action in an appropriate United States district court.


    8. U.S. Court of Appeal: The person can appeal to a United States Court of Appeals within the appropriate time for review of a Commission order or appeal of a district court order.


    9. Payment of Penalty.
Violation w/o compliance order or compliance, but notice of penalty for past conduct

  1. Notice of Proposed Penalty: The notice gives the person the option to choose between either (a) an administrative hearing before an ALJ at the Commission prior to the assessment of the penalty pursuant to section 31(d)(2) or, (b) an immediate penalty assessment by the Commission which may be reviewed de novo by a United States district court when the Commission files for a court order affirming the penalty assessment pursuant to section 31(d)(3). This election must be made within 30 days of receiving the notice of proposed penalty. If the violation is of a final compliance order under section 31(a), however, there is no choice and the penalty is assessed after an administrative hearing before an ALJ. The following outlines the process for assessing a civil penalty under FPA Part I:


  2. ALJ Hearing Immediate Penalty Assessment
    Hearing Order: The Commission will issue a hearing order that will inform the person of the opportunity for an administrative hearing before an ALJ. The ALJ will conduct a hearing under Part 385 of the Commission’s regulations. Staff from the Office of Enforcement will serve as trial staff at the hearing.

    Initial Decision: The ALJ will issue an Initial Decision and determine whether a violation or violations occurred. If a violation is found, the Initial Decision will recommend any appropriate penalty, taking into account factors described in the Policy Statement on Enforcement.

    Exceptions: The Commission will consider the Initial Decision of the ALJ and any exceptions filed.

    Final Commission Decision Penalty Assessment: If the Commission determines that there is a violation, the Commission will issue an order and may assess any appropriate penalty.

    Payment of Penalty: Subject can pay penalty assessment at this time or.

    Seek Rehearing: In accordance with FPA section 313(a) and Rule 713, the person may request a rehearing no later than 30 days after the issuance of the order assessing the penalty.

    U.S. District Court Collection on Judgment - Judicial Enforcement: Once there is a final Commission decision under the section 31(d)(2) process or the Commission has obtained a judgment under section 31(d)(3), the Commission can institute a collection action in an appropriate United States district court.

    U.S. Court of Appeal: The person can appeal to a United States Court of Appeals within the appropriate time for review of a Commission order or appeal of a district court order.

    Payment of Penalty.
    Immediate Penalty Assessment: If the Commission finds a violation, the Commission will issue an order setting forth the material facts that constitute the violations and assess any appropriate penalty.

    District Court Review: If the assessed penalty is not paid within 60 days, the Commission will institute an action in a United States district court, where, pursuant to FPA section 31(d)(3)(B), the court is authorized to review de novo the law and facts involved.

    Judgment: The United States district court will have jurisdiction to enter a judgment enforcing, modifying, enforcing as modified, or setting aside, in whole or in part, the Commission’s penalty assessment. The Commission can appeal an order that modifies or sets aside the Commission’s penalty assessment.

    Payment of Penalty.



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